Former Chairman of Inverworld
Pleads Guilty in Ponzi Scheme

Jose Zollino, the former chairman of Inverworld Inc., pleaded guilty to conspiracy to commit fraud and money-laundering in a scheme in which wealthy Mexicans lost more than $300 million in 1999.

Prosecutors say that Mr. Zollino operated what amounted to a Ponzi scheme, promising investors returns above market rates on money that was to be invested in Asia and in real-estate developments in Mexico. Mr. Zollino allegedly paid old...